On January 23, British semiconductor wafer manufacturer IQE, a supplier to Apple, announced that it is in the final stages of securing debt financing. The company stated that its 2024 results are anticipated to surpass its previous expectations.
Following this announcement, IQE's shares surged by up to 12.5% to 13.9 pence during early trading hours.
In response to a slow recovery in the semiconductor industry and supply chain challenges, IQE initiated a strategic review of its assets last year, mentioning the possibility of an initial public offering or the sale of its Taiwanese business.
Specializing in "epi-wafers" used for facial recognition sensors in Apple's iPhone, IQE disclosed an annual revenue of 118 million pounds ($145.2 million) and adjusted earnings before interest, taxes, depreciation, and amortization of at least 7.5 million pounds for the year. This outperformed its previous forecast of flat year-on-year sales around 115 million pounds and core earnings of at least 5 million pounds. Notably, analysts' predictions placed sales at 125.7 million pounds and adjusted EBITDA at 5.3 million pounds, based on an LSEG consensus of three analysts.
In a brief update, IQE reported robust shareholder support for its proposed convertible loan note, with expectations for a prompt conclusion of the process. Moreover, the company expressed optimism about the early-stage review of its Taiwan operations, noting positive interest levels from partners.
Like its competitors such as U.S.-based Skyworks Solutions and Qorvo, IQE has faced intense competition and a shift among consumers towards entry-level smartphones, in addition to supply chain disruptions. Consequently, the company's stock price saw a 50% decrease last year.
(Note: Conversion rate: $1 = 0.8127 pounds)